Expanding the number of stores in a foreign market, such as the expansion plan launched by Starbucks in China (announced in 2018), is a major capital budgeting project. A project of this scale requires coordinated planning across all functions of a business that you are studying in your Integrated Core classes. Choose and discuss three items on the income statement that you think will be impacted by this new undertaking. Explain why you chose those particular items, and how those items are impacted by the marketing, management, and operations decisions of the company.
Choose and calculate three ratios for Starbucks for the last two years. Make sure to select ratios that you think would be impacted by expanding in a new market, and explain your reasoning. Identify a competitor of SBUX and contrast the ratios. Explain why you selected this competitor. Describe how the decisions made by management, marketing, and operations functions of the company can impact, and hopefully improve, these financial ratios.
Explain how the financial decisions regarding opening a new store are related to management, marketing or operations decisions that the company must make (or has made)?